'Toxic trio' of emerging markets smelling of roses

London

LABELLED the emerging market "toxic trio" until not so long ago, the high-yielding bonds of Ukraine, Argentina and Venezuela have come up smelling of roses for those who were brave enough to buy into them at the start of the year.

Ukraine's debt restructuring, pro-business Mauricio Macri's election win in Argentina and hopes Venezuela will see something similar on Sunday, have seen a dramatic turnaround in investors' attitude towards all three countries.

Ukrainian bonds have returned almost 50 per cent this year, making them the world's best performers, and Venezuela and Argentina are number two and three having chalked up gains of 28 and 24 per cent respectively. …